Halliburton (HAL) Stock Forecast & Price Target

Halliburton, as North America's largest oilfield-services company, has shown significant growth in its completion and production (C&P) segment, which reported increased revenue and the highest margins of the year despite low fracturing activity. The company is forecasted to generate $1.8 billion in free cash flow (FCF) in 2026, reflecting a year-over-year growth of 6%, supported by its strong market position and innovative techniques that lower development costs. Additionally, potential catalysts such as higher commodity prices and improved pricing for services could enhance Halliburton's competitive dynamics and overall financial performance.

Halliburton's outlook for 1Q26 indicates a projected revenue decline of 6%, leading to an anticipated adjusted EBITDA decrease of approximately 14% quarter-over-quarter. The company expects challenges in both its Completions and Production (C&P) and Drilling and Evaluation (D&E) segments, with operating margins decreasing significantly, particularly in C&P with a potential decline of 300 basis points. Additionally, net debt to EBITDA ratios suggest a concerning trend, with an expectation of higher corporate and net interest expenses further impacting profitability, contributing to a negative financial outlook for the company.